Open Access

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Open Access MD & CEO, Indian Energy Exchange [email protected] www.iexindia.com

description

Mr. Jayant Deo MD & CEO, IEX at RPR 2012, 23-26 August, Goa, India

Transcript of Open Access

Page 1: Open Access

Open Access

MD & CEO, Indian Energy Exchange [email protected]

www.iexindia.com

Page 2: Open Access

Proviso 86 (1) (a)

Section 86 . (Functions of State Commission) : --- ( 1 ) The State Commission shall discharge the following functions, namely : - (a) determine the tariff for generation, supply, transmission and wheeling of electricity, wholesale, bulk or retail, as the case may be, within the State :

Provided that where open access has been

permitted to a category of consumers under section 42 , the State Commission shall determine only the wheeling charges and

surcharge thereon, if any, for the said

category of consumers ;

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Guidelines for DISCOMS under Sec 49 contract with Open Access consumers…

Section 45. (Power to recover charges): --- (2) The charges for electricity supplied by a distribution licensee shall be - (a) fixed in accordance with the methods and the principles as may be specified by the concerned State Commission ; (b) published in such manner so as to give adequate publicity for such charges and prices.

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Analysis of Rate of Sale of Power (INR/kWh) for all Generating

Stations for 2008-09

Cost of power procurement will decrease as bulk consumers are pushed into the market

0.00

0.50

1.00

1.50

2.00

2.50

Wei

ghte

d A

vera

ge R

ate

of

Sale

of

Po

wer

(R

s./

kWh

)

Cumulative Capacity Generation (MW)

Source: CEA Annual Report 2009-10 Max Value Rs. 2.37/kWh

At 75% Value is Rs. 1.82/kWh

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31 49 74 113 167 214

398 345

24 14 1 46

206

394

536 591

662 665

821

747

774

608

198

36 18 14 10 21

179

556 540

45 15 38 43

161

224

288

265

241

273 266

291

286

325

275

302

168 139 136 88 102

215

337 426

164 122 130 115

294

252

244

254

275

267 228

286

279

298

216

185

204 172 173

132 147

180

167 163

172

145 192

270

0

500

1000

1500

24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Night-Off Peak Morning Peak Day Peak Evening Peak

Average unsold power per hour during the month of May-2011 for the Price range of Rs-2 to 3.5

Rs3.5

Rs 3

Rs2.5

Rs 2

A Minimum of 230 MW in every hour

Approximately 65% (Approximate-600 MU) of power was not sold on an average for Rs-3.5

Quantity in Mega Watt

H O U R S O F T H E D A Y Source: IEX

At IEX, daily 500 MW – 2000MW unsold during Aug’10 - Oct’11 while Load shedding…

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Impact of migration of the HT Consumers from MSEDCL to market purchase mode

Source: MERC, Annual Performance Review for MSEDCL FY 2010-11

Percentage migration of HT consumers

Per unit (Rs./Kwh) 5% 10% 15% 20% 33%

Reduction in energy purchased (MU) 1985.77 3971.54 5957.32 7943.09 13106.10

Reduction in cost (Rs. Crore) 953.76 1832.81 2704.15 3529.40 5643.75

Reduction in revenue (Rs. Crore) 848.99 1697.97 2546.96 3395.95 5603.31

Total additional revenue/ cost saving 137.06 199.41 254.05 262.60 253.53

If cross subsidy surcharge applied 0.91 139.91 279.82 419.72 559.63 923.39

TOTAL AMOUNT SAVED/ADDITIONAL REVENUE (Rs. Crore) 276.97 479.22 673.77 822.23 1176.92

Additional Revenue as a percentage of Sale revenue 0.94% 1.62% 2.28% 2.79% 3.99%

Without cross subsidy 0.46% 0.68% 0.86% 0.89% 0.86%

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More consumers need to be pushed into the open market…

State No. of Private Generators

(CPP, IPP, MPP & Co-gen)

Open Access Industrial

Consumers

Maharashtra 8 1

Rajasthan 12 82

Karnataka 31 16

Andhra Pradesh 12 66

Punjab 4 285

Orissa 2 0

Madhya Pradesh 8 6

Chhattisgarh 19 3

Haryana 1 74

Tamil Nadu 0 516

Gujarat 16 62

Uttarakhand 1 32

Arunachal Pradesh 0 4

Others 39 2

Total 153 1149

Participation at IEX

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To promote competition in electricity, IEX has proposed a National Bulk Market…

1 MW+ Deemed Open Access Consumers

No Regulated Tariff for Energy

DISCOMs not prepared to give Standby power

Sec 49 contract faces audit compliance hurdle

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Established DAM Market

Well established National Day-Ahead-Market (DAM)

Up to 2,800 MW traded for 1,000+ Direct Consumers

Error free auctions for 36,000+ Hours

System Operators, Banks & stakeholders geared for large volumes

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Demand Met Demand Met

Total Capacity 171,926 MW

Total Capacity 190,593 MW

Due to below cost recovery prices there is “bottled up” Capacity

Demand Met Demand Met

Total Capacity 171,926 MW

Total Capacity 190,593 MW

Demand Met (MW)110,256

Demand Met (MW)116,191

Total Capacity (MW)

Total Capacity (MW)

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

220,000

Mar-11 Mar-12

Capa

city

(MW

)

173,626

199,62764%

58%

Source: CEA

Peak Factor

Rampant load shedding Backup DG sets at Rs. 13/ kWh

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National Bulk Market

Enable a voluntary pool for 15,000 1MW+ consumers

Pool is supplied power through the Day-Ahead-Market

DISCOMs to declare unrequired supplies for short term

Gencos offer unrequired power at DAM & share profits with DISCOMs (losses to be put under addl surcharge)

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National Bulk Market

IPPs, NTPC to provide power (Solar:Coal and part of discretionary quota to pool)

Balancing market could be started to ensure stability

Transmission corridor allocation to be done suitably to ensure supplies

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No Regulated

Tariff for

1MW + consumers

Fuel Cost pass through

for UMPPs /other plants

Corridor Allocation & Power from

Private, Mixed etc.

LNG Supply for Gas

Power Plants

DAM

Current Scenario New Scenario

Summary

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Promoters:

Joint Equity Partners:

Technology :

Thank you! www.iexindia.com